Clive Palmer, the Australian mining magnate, owes $13.6 million in court costs. This decision follows an international arbitral tribunal’s rejection of his claims against the government of Western Australia. Palmer’s case centered on his assertion of significant financial losses stemming from the government’s refusal to permit the development of the Balmoral South iron ore project in the Pilbara region, which he initially sought $30 billion in damages for. In a unanimous judgment in 2021, the High Court supported a law enacted by the WA state government. This decision prevented Palmer from bringing his claims.
Palmer alleged that the economic impacts of the case became more severe. Even worse, he failed to sell the project to a Chinese company, further boosting his losses. The ruling found that Palmer was not a “foreign investor” under Australian law. Consequently, they denied his claims for payment.
The Fallout from the Legal Battle
Western Australian Premier Roger Cook remarked that if successful, Palmer’s case could have “bankrupted” the state, highlighting the potential financial implications of the claims. The WA government welcomed the tribunal’s decision, with senior minister Reece Whitby stating, “It points to the fact that we’ll always defend Western Australia, we’ll always stand up for taxpayers of this state and for our economy.”
Palmer’s legal challenges have been extensive. He originally sued for $30 billion plus in damages after the government rejected his proposed mining project back in 2012. He later converted this, filing a separate claim of $300 billion against the Commonwealth. The dismissal of these claims has prompted reactions from various quarters, including Cook’s assertion that he hopes this decision will “finally close the book on this long-running saga.”
Implications for Future Investments
In response to the tribunal’s decision, experts have weighed in on what this means for future investments in Australia. Alvin Yap noted that modern investment treaties now contain clearer provisions to prevent entities without substantial operations in a jurisdiction from claiming protections meant for genuine foreign investors.
Palmer strongly criticized the WA government’s legislation, referring to it as “targeted, weaponised legislation of an unprecedented nature.” His office made clear that he plans to continue to fight the judgment. This means he could continue to pursue legal avenues under international law even after all domestic options in Australia have been exhausted.
“Mr Palmer is not a ‘foreign investor’ and is not entitled to any benefits under Australia’s free trade and investment agreements.” – Michelle Rowland
Public Citizen said that it should be understood that investment protections are only designed to cover good-faith foreign investors. This important element would prevent future claims of the same kind.
